How Pantera’s A$40M Smackover Sale Fuels Its US Critical Minerals Ambitions
Pantera Lithium has completed the sale of its Smackover Lithium Project to EnergyX for A$40 million, securing cash and stock that bolster its balance sheet and strategic focus on US critical minerals.
- Smackover Project sold for A$40 million including cash and EnergyX shares
- Upfront cash of A$2 million received with further payments over 18 months
- Shareholders overwhelmingly approved the transaction
- Pantera retains exposure to EnergyX’s lithium projects and technology
- Company to pursue diversified critical mineral opportunities across the US
Strategic Sale and Capital Injection
Pantera Lithium Limited has marked a pivotal moment in its evolution by completing the sale of its Smackover Lithium Project in Arkansas to Energy Exploration Technologies Inc. (EnergyX) for a total consideration of A$40 million. This deal, comprising A$6 million in cash and A$34 million in EnergyX stock, provides Pantera with a significant capital injection without immediate shareholder dilution.
The transaction was strongly supported by Pantera’s shareholders, who voted overwhelmingly in favour, underscoring confidence in the company’s strategic alignment with EnergyX and the value-creation potential of the deal.
Maintaining Exposure to Lithium Innovation
While divesting the Smackover asset, Pantera retains a meaningful stake in EnergyX through the receipt of over two million shares. This positions Pantera to benefit from EnergyX’s ongoing development of Project Lonestar™, a lithium hydroxide facility expected to produce 50,000 tonnes per annum, and their advanced direct lithium extraction (DLE) technology. The deal also connects Pantera to EnergyX’s Black Giant project in Chile, broadening its exposure to cutting-edge lithium extraction and processing innovations.
Refocusing on US Critical Minerals
With a strengthened balance sheet, Pantera is now poised to accelerate its pursuit of new critical mineral opportunities across the United States. The company’s renewed focus spans lithium, antimony, copper, silver, and rare earth elements, targeting projects in jurisdictions with robust infrastructure and supportive regulatory environments. This diversification strategy aims to position Pantera as a key player in the US energy transition supply chain.
Pantera’s executive leadership emphasizes that this multi-mineral approach complements the EnergyX transaction and aligns with long-term shareholder value creation objectives.
Financial and Operational Highlights
During the quarter, Pantera reported exploration expenditure of A$63,000 and director fees totaling A$143,000. The company ended the period with cash reserves of A$413,000, supported by the initial cash payments from the sale. Further cash payments of A$4 million are scheduled over the next 18 months, providing ongoing liquidity.
Looking ahead, Pantera plans to maintain a disciplined approach to exploration and acquisition, with updates on new US critical mineral opportunities expected in the coming quarter. The company also intends to closely monitor the progress of Project Lonestar™ and its associated milestones.
Bottom Line?
Pantera’s Smackover sale unlocks capital and strategic flexibility, setting the stage for a diversified US critical minerals push.
Questions in the middle?
- How will EnergyX’s stock performance impact Pantera’s valuation and shareholder returns?
- What specific new projects is Pantera targeting in lithium and other critical minerals?
- How quickly can Pantera translate its strengthened balance sheet into meaningful asset acquisitions?
